OJSC MAGNIT: Execution of the Related Party Transaction

Press-release 
Krasnodar 
December 28, 2012 
OJSC "Magnit" announces the execution of the related party transaction 
Krasnodar, December 28, 2012: OJSC "Magnit" (the "Company", the "Issuer"; MICEX
and LSE: MGNT) announces the execution of the related party transaction on
December 28, 2012. 
The essentials of the transaction are as follows: 
Type of transaction: Related party transaction                                  
                                                                           
Subject of           Provision by the Issuer of the guarantee to the credit    
transaction:         agreement №108-VKL/KRD-12, executed between JSC "Tander"  


                       and "Absolut Bank" joint-stock commercial bank (closed    
                     joint-stock company) of December 19, 2012                 


                                                                           
Content of the       In accordance with the guarantee agreement №108-DP1/KRD-12
transaction:         of December 28, 2012 the guarantor shall be solidarily     


                     liable to the creditor for the obligations of the borrower
                     under the credit agreement executed on the following      
                     terms:                                                    
                                                                               
                       * Amount of credit: 1 000 000 000 (one billion) rubles  
                                                                               
                       * The granted term of the credit is until July 31, 2013 
                                                                               
                       * The borrower shall pay the interest on credit to the  
                         creditor at the rate determined by the credit         
                         agreement but not exceeding 20% per annum             
                                                                               
                       * The liability of the guarantor is limited by the      
                         amount of 1 250 000 000,00 (One billion two hundred   
                         and fifty thousand million) rubles                    


                                                                           
Deadline for the     The guarantee is valid until the borrower fulfills        
fulfillment of the   obligations to the creditor under the credit agreement but
obligation:          no longer than 1 (One) year from the agreement end date    
                                                                           
Parties and          The creditor - "Absolut Bank" joint-stock commercial bank 
beneficiaries under  (closed joint-stock company)                              
transaction:                                                                    


                     The guarantor - open joint-stock company "Magnit"         
                                                                               
                     The borrower (beneficiary) -joint-stock company "Tander"  


                                                                           
The Amount of the    The liability of the guarantor is limited by the amount of
transaction in the   1 250 000 000,00 rubles which amounts to 1,913% of the    
monetary value and   balance sheet assets of the issuer                        
as a % of the asset                                                            
value of the issuer:                                                            
                                                                           
Asset value of the   65 342 418 thousand rubles                                
issuer as of the                                                               
closing date of the                                                            
accounting period                                                              
preceding the                                                                  
execution of the                                                               
transaction:                                                                    
                                                                           
Date of the          December 28, 2012                                         
transaction                                                                    
execution:                                                                      
                                                                           
Information on the   The transaction was approved by the General shareholders' 
approval of the      meeting (the minutes of the AGM of OJSC "Magnit" w/o No.  
transaction:         of May 28, 2012)                                           
For further information, please contact: 
Oleg Goncharov                          Director, Investor Relations            


                                                                               
                                        e-mail: Goncharov@gw.tander.ru         
                                                                               
                                        Tel. in Krasnodar +7 (861) 277-45-54,  
                                        210-98-10 ext. 5100                    
                                                                               
                                        Mob.: +7 (903) 411-40-35               
                                                                               
                                        Direct line for investors only: +7     
                                        (861) 277-45-62                        


                                                                           
Dina Svishcheva                         Manager, Investor Relations             


                                                                               
                                        e-mail: Chistyak@gw.tander.ru          
                                                                               
                                        Tel. in Krasnodar +7 (861) 277-45-54,  
                                        210-98-10 ext. 5101                    
                                                                               
                                        Mob.: +7-961-511-02-02                 
                                                                               
                                        Direct line for investors only: +7     
                                        (861) 277-45-62                        

Company description:

Headquartered in the southern Russia city of Krasnodar, Magnit (LSE and MICEX:
MGNT) is the holding company for a group of entities that operate in the retail
trade under the "Magnit" brand. The chain of "Magnit" stores is one of the
leading food retail networks in Russia. As of September 30, 2012 the chain
consisted of 5,523 convenience stores, 105 hypermarkets, 11 "Magnit Family"
stores and 480 cosmetics stores (drogerie) in 1,504 cities and towns throughout
the Russian Federation.

Approximately two-thirds of the Magnit's stores are located in cities with a
population of less than 500,000 inhabitants. Most of its stores are located in
the Southern, North-Caucasian, Central and Volga regions. The Company also
operates stores in the North-Western, Urals and Siberian regions.

As of September 30, 2012 Magnit operated an in-house logistics system
consisting of 17 distribution centers, employing automated stock replenishment
systems and a fleet of 4,082 vehicles.

In accordance with the reviewed IFRS consolidated financial statements for 1H
2012, the Magnit recorded consolidated revenues of approximately $6.7 billion
USD and a consolidated EBITDA of $671 million USD.

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-0- Dec/28/2012 11:25 GMT


 
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